COLLECTION MODULE Clause Samples

The COLLECTION MODULE clause establishes the procedures and responsibilities related to the collection of payments or receivables under an agreement. Typically, this clause outlines how and when payments are to be collected, which party is responsible for initiating collection actions, and may specify the use of third-party collection agencies if necessary. By clearly defining the collection process, this clause helps ensure timely payment, reduces disputes over payment obligations, and provides a structured approach to handling overdue accounts.